Hon Deputy Speaker, Deputy President and hon members, we are here to discuss your favourite topic: tax. The 2008 financial crisis and the current economic stresses in Europe, in particular, once again underline the crucial importance of sound tax policy, an effective tax administration and a deeply entrenched compliance culture in society. We are privileged to have all three in South Africa. This Bill reflects our constant endeavour to simplify law, reduce red tape and streamline administration to provide a better service to taxpayers, whilst strengthening enforcement and compliance.
Our tax administration law is currently duplicated in several different tax Acts, for example the Income Tax Act, the Value-Added Tax Act, the Customs and Excise Act, ranging in age - that is, the legislation - from three to 62 years old. The time has come to streamline and bring the law up to date. The Tax Administration Bill creates a single, modern framework for the common administration of the provisions of the tax Acts. The consultation process on this Bill extended for over a two-and-a-half-year period.
The key features of the Bill that I am going to summarise very quickly are the following: a phased move to a single registration process and number across taxes to reduce red tape and streamline the system - currently, you have to register for PAYE, VAT and income tax separately; a single account for taxes and simplified allocation rules for the same reason, and self- assessment of taxes so that taxpayers do not have to wait for a Sars assessment. Of course, this depends upon the honesty of taxpayers.
Other key features of the Bill include: greater access to third-party data to underpin Sars' initiatives, such as the prepopulation of individual tax returns; clearer rules on Sars' access to information so that tax liabilities can be determined more quickly and more accurately; the ability to search business premises without a warrant in narrow cases, or a few cases, and issue so-called jeopardy assessments so that Sars can act when tax is at risk and time is of the essence. There are many people in South Africa and elsewhere in the world who won't hesitate to sell their assets, for example, if they know that Sars is on the way. So, we need to do things fairly quickly to stop those sorts of escape mechanisms.
Other features of the Bill include: clear requirements and timelines for the issuance of tax clearance certificates to provide greater certainty; feedback on audit progress and findings to engage more fully with taxpayers, and what this means is that sometimes complex audits take a long time and Sars now has the obligation to keep the taxpayer informed about progress in respect of the audit; specific timeframes for decisions of the Tax Board, which is the equivalent of a Small Claims Court, in respect of tax, and wider reporting of Tax Court decisions to improve access to justice. Tax Courts are very different from ordinary courts. Matters heard in a Tax Court are heard "in secret", if you like, and they are not reported unless the judge decides so. What this does is give anonymity to the taxpayer, but allows the case to be reported so that more role-players can understand what happened in the Tax Court. Lastly, the introduction of a Tax Ombud, informed by international experience, will provide taxpayers with a low-cost mechanism to address administrative issues.
In conclusion, one thing that the Bill before us does not address is the transformation of the adviser community. The aggressive undermining of the fiscus that some pursue, obviously at the receipt of a fee even at a time of extreme fiscal stress, is extremely dangerous, as we can see in Greece and Italy and other countries. They and their clients must pause for reflection, as we must also, on the damage they can do to the tax system and South Africa, more broadly, as a result of their practices.
I would like to thank the broad range of stakeholders who have been involved in the development of the Bill over the last two and a half years. More specifically, I would like to thank the Standing Committee on Finance and chairperson Mufamadi and his team for their invaluable contribution. This has included feedback during the briefing process, a productive public hearing process and the comprehensive set of clarifications, corrections and enhancements that have been set out in the Bill. Thank you. [Applause.]